And Speaking Of OLED TV…
LG Electronics (066570.KS) the brand leader in OLED TV has revealed pricing and availability for a number of the new models it is releasing this year. While availability is less of a question, the price of LG’s OLED offerings is an important topic given that they compete with traditional LCD TVs, quantum dot enhanced LCD TVs, Mini-LED TVs, and potentially QD/OLED TVs next year. One of the biggest selling points for traditional LCD and QD LCD TVs is the high cost of OLED TVs, which both LG and its semi-captive supplier LG Display (LPL) have been working toward reducing. LGD’s Guangzhou OLED fab is now completed and the company’s other large panel OLED fabs are operating in both regular and MMG mode, which allows for more efficient panel production, so the company should be able to pass those savings on to LGE and eventually to customers.
In that regard, we compare the just revealed pricing for LGE’s new OLED TV models against last year’s models, not from a feature set perspective but from an absolute price perspective. We assume that the feature set of current models is as good as or better than last year’s models and we show initial price rather than current price for comparison. We have highlighted the models where price reductions have occurred.
In that regard, we compare the just revealed pricing for LGE’s new OLED TV models against last year’s models, not from a feature set perspective but from an absolute price perspective. We assume that the feature set of current models is as good as or better than last year’s models and we show initial price rather than current price for comparison. We have highlighted the models where price reductions have occurred.
We note that by upgrading LGD’s Gen 8.5 large panel fabs to MMG, 77” OLED TV panel substrate efficiency is increased from ~59% to ~83% and 65” OLED TV panel production substrate efficiency is increased from ~64% to ~91%, which can make a considerable difference to the cost of the panels. That, combined with a lessened need to change production sizes on a per line basis, and the overall component and material savings from the overall higher volume, give LG a bit more room to be competitive this year. The table below shows the initial price reductions for those models indicated in red above. Given the increased substrate efficiencies of the MMG process, it can be seen that the biggest price improvements are focused around 65” and 77” OLED TV models. Again, while other efficiencies and continuing production experience helps to lower OLED TV panel prices, the reductions in 65” and 77” models are quite telling.
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